HCL Technologies achieved a significant milestone with 6,450 net employee additions in Q2FY27, marking its highest quarterly addition in 16 quarters and taking total headcount to a record 230,339 employees as of September 30, 2026. The hiring surge was primarily driven by 6,136 freshers added, a substantial increase from 1,056 in the June quarter and 1,712 in March 2026. This represents a sharp turnaround from the net reduction of 3,292 employees reported in the June quarter. The company's workforce expansion comes alongside its strong financial performance, with revenue per employee standing at $65,400 annually in September, compared with $65,500 in June. The latest quarter's addition took the workforce past previous levels to a new all-time high, with the company's annual wage hikes effective from October 1. As reported by Live Mint, the hiring surge comes against a cautious backdrop, with the company demonstrating confidence in its growth trajectory.
HCL Technologies delivered exceptional Q2FY27 results with consolidated net profit rising 21.2% to ₹5,132 crore, significantly outperforming market expectations of ₹4,859 crore from analyst estimates. The Noida-headquartered IT services giant announced these results post-closing of Indian stock markets on Monday, October 12. The company also declared an interim dividend of ₹12 per share for FY27, with October 16, 2026 set as the record date and payment scheduled for October 26, 2026. This represents the fourth interim dividend for FY27, following previous payments of ₹12 in January 2026, ₹24 in April, and ₹12 in July. The strong performance was driven by the ramp-up of the Guardian Life deal and seasonal strength in the quarter ending September 2026. However, revenue performance slightly missed analyst expectations, with consolidated revenue rising 11.5% to ₹35,620 crore, compared with analyst estimates of ₹35,686 crore. The company's dollar revenue rose to $3.7 billion in the September quarter, up 2% sequentially and 2.2% year-on-year. The company's Board of Directors recommended the interim dividend, marking its 95th consecutive quarter of dividend payouts. TCS reported a 15% annual jump in consolidated net profit at ₹13,884 crore in Q2FY27, against a net profit of ₹12,075 crore a year-ago, with TCS setting October 14 as its record date for dividend eligibility.
HCLTech raised its FY27 revenue growth guidance to 2.5-4% in constant currency terms, from its earlier forecast of 1-4%, while narrowing its services revenue growth guidance to 3-4% from 1.5-4.5%. The company retained its earnings before interest and tax (EBIT) margin guidance at 17.5-18.5%. CEO and Managing Director C Vijayakumar highlighted the company's strong performance, stating "We delivered a strong quarter with new bookings of $3.3 billion, up 27% YoY, taking first half bookings to a record high." The company reported new deal bookings of $3.26 billion in the September quarter, up 27% YoY, with first-half bookings reaching a record high. Advanced AI revenue grew 28.4% QoQ and 78% YoY in constant currency terms, with revenue from advanced AI services standing at $219 million. The company's cash position stood at ₹25,457 crore after spending ₹3,742 crore on acquisitions during the quarter, while return on invested capital improved to 41.2%, up 261 basis points year-on-year. As reported by Live Mint, the sharp rise in deal bookings was led by the Guardian Life and European automotive deals. More than half of incremental revenue came from telecom and media firms, making up a little more than a tenth of its business. The company secured new deals worth $3,258 million, indicating strong demand despite global uncertainties, with the total contract value being the highest since the September 2023 quarter when it had announced $3,969 million worth of new deals.
Revenue performance showed a 2% sequential improvement during the September quarter, following two consecutive quarters of decline. The company reported $3,724 million in revenue, representing 11.5% year-on-year growth and 3% sequential growth from ₹34,579 crore in the June quarter. In constant currency terms, revenue grew 2.3% sequentially and 2.6% year-on-year. The recovery was driven by deal ramp-ups and contributions from acquired businesses, as reported by The Economic Times. However, management noted that revenue contribution from the top five clients has stabilized after two quarters of decline, suggesting that spending pressures among HCLTech's largest accounts are easing. The rupee averaged 95.72 against the dollar during the quarter, compared with 87.63 a year ago, which accounted for much of the double-digit rupee growth. EBIT rose 10.9% QoQ to ₹6,465 crore, compared with ₹5,831 crore in the previous quarter, with EBIT margin expanding to 18.1% from 16.7%, reflecting an improvement in operating profitability. The higher growth in rupee-denominated revenue compared with constant currency revenue may have been supported by favourable currency movements.
The company's artificial intelligence business achieved a significant milestone with advanced AI revenue reaching $219 million, representing 28.4% sequential growth and 78% year-on-year growth in constant currency terms. This represents nearly 6% of total revenue and an annualized run-rate of close to $900 million. Chairperson Roshni Nadar Malhotra said the accelerating growth in Advanced AI revenue validated the company's business strategy, adding that investments across the AI stack and strategic partnerships positioned HCLTech to serve enterprises and governments globally. The deals this quarter demonstrate HCLTech's expanding AI capabilities, including building an "AI Factory" for a US-based AI-native company, scaling infrastructure for a US neocloud provider, and deploying ChatGPT Enterprise for a US healthcare provider. The company also secured Advanced Partner status with OpenAI, positioning itself as a key player in the AI infrastructure and services market. Additionally, HCLTech announced a partnership with Anthropic ahead of earnings, stating it will set up a dedicated business unit to build AI agents and accelerate Claude adoption, further strengthening its AI capabilities. The management highlighted continuing AI-led revenue deflation, with Vijayakumar stating "There is no one way to define how much deflation is already there and how much is yet to come. I would say we are in the early phases of deflation." As reported by The Economic Times, both HCLTech and TCS reported sustained traction in new deal wins, stressing the rising importance of AI-related conversations with clients. For investors, the second half of the fiscal year will be crucial, given the seasonal weakness due to holidays and the annual exercise undertaken by clients to decide IT budgets.
HCLTech shares are expected to remain in focus following the strong Q2 results, with mixed brokerage recommendations from leading analysts. Emkay maintains a BUY rating with a target price of ₹1,250, indicating an upside of 2.21%, while Nuvama maintains a HOLD rating with the same target price of ₹1,250. Nomura raises its target price to ₹1,330 from ₹1,310, indicating an upside of 8.75%, and DAM Capital maintains a BUY rating with a target price of ₹1,400, suggesting an upside of 14.47%. However, Nirmal Bang maintains a SELL rating with a target price of ₹1,014, indicating a downside of 17.09%. Morgan Stanley maintains an EQUAL-WEIGHT rating with a target price of ₹1,390, indicating an upside of 13.57%, while HDFC Securities maintains an ADD rating with a target price of ₹1,370, suggesting an upside of 12.02%. The Nifty 50 constituent settled 0.5% higher at ₹1,223 in the previous trading session, with the stock expected to remain in focus as investors assess the company's strong quarterly performance and enhanced guidance.
